general terms and definitions Flashcards
define needs?
Things individuals must have satisfied in order to sustain life.
What happens if needs are not meet?
you may die
What are wants?
Desires individuals would like to have satisfied but are not necessary to sustain life. Wants are unlimited.
What is scarcity?
limited resources relative to our unlimited wants
What is choice?
A decision made between alternatives.
What is opportunity cost?
The next best alternative FOREGONE when a decision is made.
Define economics?
The study of solving the promblem of how to allocate scarce resources that have alternative uses so as to maximise satisfaction of consumers needs and wants
What is needed for economics
For economics to happen there must be sacristy limited resources and unlimited wants.
What are our needs
food,water,shelter and clothing
What our limited needs means
time not enough time.
skill could effect how fast you use your time.
money can make time.
family will take away time
What are the economics decisions
What to produce
what resources are to be used and how they are produced
Who is to the get goods
means
our limited resources we have to satisfy our needs and wants.
